Capital Futures Corp (群益期貨) aims to grow its income by 24 percent this year from last year by expanding into securities trading at home and deepening its overseas operations by working with partners, senior executives said on Thursday.
The futures brokerage has approved plans to raise its capital of NT$1 billion (US$32.8 million) by 20 percent, or NT$200 million, to fund expansions abroad, particularly in Greater China, president Alex Chia (賈中道) said at a press conference.
The company plans to channel part of the proceeds to its Hong Kong subsidiary, allowing it to deepen alliances with foreign partners and tap into the Chinese market by setting up a futures house under the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and China, Chia said.
CEPA allows futures firms in Hong Kong to own up to a 49 percent stake in a joint venture in China.
Capital Securities, which has had an office in Shanghai for more than a decade, intends to open a branch in Shenzhen, but has to wait until after the cross-strait service trade pact clears the legislature.
“Capital Futures is qualified to enter China regardless of how the cross-strait service trade pact pans out,” Chia said, adding that the company is in talks with potential Chinese partners.
Furthermore, the company’s Hong Kong unit joined with True Partner Holding Co, a trading and information consultancy, enabling Capital Futures to acquire so-called “market maker” trading rights for stock options on the Hong Kong Stock Exchange, Chia said.
Under the partnership, True Partner Holding has a 5 percent share in Capital Futures Hong Kong and will double its stake in June this year, Chia said.
Locally, Capital Futures plans to expand its operations including securities proprietary trading and consultancy.
“New businesses in Taiwan and abroad will boost earnings, and the company has set growth at 24 percent this year,” Chia said.
He urged the Financial Supervisory Commission to further ease the cap on foreign investment, currently set at 40 percent of a company’s net worth, to expand limited investment opportunities in Taiwan.
Capital Futures posted NT$279 million in net profit last year, roughly flat from a year earlier, said Dan Chen (陳文采), the company’s head of administration.
The company’s board has approved a cash dividend of NT$1.79 per share based on last year’s earnings, Chen said.